Yellen's final act at the Fed was to hit one of the largest USA banks, Wells Fargo&Co, with an unusual ban on growth that follows the San Francisco-based lender's pattern of consumer abuses and compliance lapses. Until Wells Fargo tends to weaknesses in territories including interior oversight, it can't make any move that would help add up to resources past their level toward the finish of 2017, without the Fed's consent.
"This is much the same as the last scene in 'The Godfather,"' said Isaac Boltansky, an examiner at Compass Point Research and Trading.
Yellen has not only led the Fed - the first woman to do so - but has also picked up a few other things there, like her husband, Nobel Prize victor George Akerlof.
It's been a long time coming.
Wells Fargo became engulfed in scandal in 2016 after admitting its employees had opened 3.5 million phony deposit accounts and lines of credit without the knowledge of its clients as part of high-pressure retail sales tactics the bank touted to investors but has since repudiated.
Since then, the bank has also admitted to other questionable practices, including charging car-loan customers for insurance they did not need and charging improper fees to some mortgage borrowers. He was on a temporary Fed assignment when they met in 1977.
In a statement, the Brookings Institution said Yellen's "record looks pretty darn good". She was president of the San Francisco Fed from 2004 to 2010. She likewise sent a letter on Friday to Senator Elizabeth Warren, a Democrat who's among the bank's most unmistakable commentators. The development limitation "is novel and more stringent than the punishments the Board has forced against other bank holding organizations for comparative unsafe and unsound practices".
WASHINGTON, D.C.: The US Federal Reserve on Friday ordered troubled commercial banking giant Wells Fargo to halt its expansion until it improves its governance, following "pervasive and persistent misconduct". The firm's compliance will be measured as an average of assets over two quarters, according to the regulator.
After Federal Reserve approval, the company will engage independent third parties to conduct a review to be completed no later than September 30, 2018 to confirm adoption and implementation of the plans.